Morocco’s OCP Group completes $531 million bond sale to strengthen capital base

OCP Group (Office Chérifien des Phosphates), the world’s largest phosphate producer and a leading global fertilizer player based in Morocco, has raised MAD5 billion ($531.09 million) through a perpetual subordinated bond issuance in the domestic market, reinforcing its capital structure and financial flexibility.

The state-owned fertilizer giant said the fully subscribed offering was placed with institutional investors, highlighting sustained confidence in its credit strength and long-term growth strategy.

Strong demand for OCP Group’s credit from institutional investors
The issuance attracted a diversified pool of investors, including asset management firms, insurance and reinsurance companies, and pension funds, underscoring robust demand for OCP Group’s credit in the local capital market.

According to the group, the transaction was structured into four tranches with staggered maturities, allowing it to meet varying investor preferences and risk appetites. The deal was executed with advisory support from CDG Capital and Attijari Finances Corp., while CDG Capital and Attijariwafa Bank led the placement.

The successful placement reflects continued investor confidence in OCP’s financial fundamentals, governance, and strategic direction, following its previous access to international hybrid debt markets.

OCP Group’s hybrid structure enhances financial flexibility
Perpetual subordinated bonds are hybrid instruments that combine features of debt and equity, typically offering no fixed maturity and allowing issuers to defer interest payments under certain conditions.

This structure enables favorable treatment in balance sheet metrics, strengthening economic equity without diluting ownership, while providing long-term financing flexibility to support capital-intensive investments.

For OCP, the instrument aligns with global financing practices among large industrial issuers and supports its proactive capital management strategy.

Supporting long-term growth and transformation of OCP Group
The bond issuance is part of OCP’s broader effort to diversify its funding sources and extend the maturity profile of its liabilities, while preserving key financial balances.

It follows the group’s earlier hybrid bond issuance in international markets and demonstrates its ability to mobilize both domestic and global institutional capital.

The additional capital is expected to support OCP’s ongoing industrial expansion, sustainability initiatives, and strategic investments, as it strengthens its role in global fertilizer supply chains and long-term food security.